WHEN WE THINK OF WELLNESS, we most often think of physical wellness. At Speakwell, we believe there are other kinds of wellness such as financial wellness and community or global wellness. To that end we are including a financial section in each issue along with some very worthwhile causes under the heading of "Global Wellness" that we invite you to consider. Take a look at each one and decide if there is something you could throw your support behind. The concept of total wellness recognizes that our every thought, word, and behavior affects our greater health and well-being. And we, in turn, are affected not only emotionally but also physically and spiritually :: Greg Anderson

The Story of Stuff

[ Click on Annie to go to the interactive movie ]

FROM ITS EXTRACTION through sale, use and disposal, all the stuff in our lives affects communities at home and abroad, yet most of this is hidden from view. The Story of Stuff is a 20-minute, fast-paced, fact-filled look at the underside of our production and consumption patterns. The Story of Stuff exposes the connections between a huge number of environmental and social issues, and calls us together to create a more sustainable and just world. It'll teach you something, it'll make you laugh, and it just may change the way you look at all the stuff in your life forever.

Give a Click?

ONLY ONE CLICK A DAY on a button at the Hunger Site »
and you will freely have given someone in need
a cup of food each time.

The Hunger Site was founded to focus the power of the Internet on a specific humanitarian need: the eradication of world hunger. Since its launch in June 1999 [this is its 9th Anniversary!], the site has established itself as a leader in online activism, helping to feed the world's hungry. On average, over 220,000 individuals from around the world visit the site each day to click the yellow "Click Here to Give—it's FREE" button. To date, more than 300 million visitors have given more than 573 million cups of staple food.

You can make a difference. Please give a click: »

Keeping Your Emotions in Check

 by David Mason, CLU, CFP, RHU

OVER THE PAST 20 YEARS, the average retail equity investor has achieved an annual return of approximately 4% while the S&P 500 (an average of the 500 largest public companies in the USA) has averaged approximately 12% growth over the same period [Source: 2007 Quantitative Investment Behaviour Study (QAIB) by DALBAR].  On a $10,000 original investment, this discrepancy represents approximately $74,000 of lost profits for the average investor.

So why does the average Joe Six-Pack miss out on all of this money?  The answer: because of his emotions.  While most start out with the intention of being long-term investors, they too often get wrapped up in the day-to-day performance of their investments and lose sight of their long-term goals.  They tend to make emotional fear-based decisions rather than using logic to see them through periods of uncertainty.

Buying and selling based on short-term market fluctuations is a sure fire way to erode your investment's value by offering up your money to shrewd investors, who like wolves are waiting to prey on the weakest sheep in the flock.  Wise investors are quite happy to take your investments off your hands at extremely low prices only to sell them back to you when they recover in value.

How might you react should you discover that your investments have suffered along with all markets worldwide?  Will you experience a knee-jerk reaction, or will you maintain your original investment discipline?

How to be a successful investor

I believe there are a few very important keys to being a successful investor.

1. Judge the performance of your investments over an appropriate timeframe.  It is futile to measure equity investments (which are long-term investments and have averaged well over 10% per annum over the past half century) on a daily, weekly, or even yearly basis.
2. Understand and accept that equity investments will always fluctuate in value, and WILL experience periods when they are volatile and reach extreme highs and lows. The odd negative year is the price you pay for earning equity type returns.
3. Have some faith and use history as your guide.  Markets have historically gone up more than down, so bailing out when the markets are down is a losing strategy.
4. When you make an investment or employ a particular strategy, stick with it.  Do not bail out just because the markets have a bad year.
5. Learn from the best.  Study the behaviour of successful investors and how they turn negative events into huge opportunities, and profits. Click here to read an article from Warren Buffett, arguably the world's most successful investor.

The moral of the story is that stock markets go up more than they go down. Stable, committed investors win by not bailing out.  Don't let temporary market volatility throw you off course. 

"I can predict the motion of the planets, but not the madness of the crowds." :: Sir Isaac Newton

David Mason is a financial advisor in Victoria, BC.
He is a Chartered Life Underwriter, Certified Financial Planner and Registered Health Underwriter.
He can be contacted at david@donnellyadvisors.com ».

What in the World?

LOST, YESTERDAY,
somewhere between Sunrise and Sunset,
two golden hours,
each set with sixty diamond minutes.

No reward is offered,
for they are gone forever.
   :: Horace Mann

World Time Clock
[ Clock thanks to Poodwaddle.com ]

Leaving a Legacy

 by David Mason, CLU, CFP, RHU

AS THE OLD ADAGE GOES, the only two things that are certain in life are death and taxes. Because of these certainties, it is imperative to make a plan to address what will happen to your family and all of your belongings after your final curtain call.

An estate plan is quite simply a plan to make certain that your final wishes will be carried out upon your death. Without a plan in place, any number of things can happen, most of which will not be what you truly want. By organizing your financial affairs ahead of time and by not leaving things to chance, you can be confident that your loved ones will be provided for according to your wishes in the most efficient manner possible.

It's important to understand that estate plans are not simply for the rich. Sure, estate plans can be extremely complicated, but for the average Canadian they can also be relatively simple. The essential components of a basic estate plan include a current will, power of attorney, and life insurance for dependents and estate liabilities.

Will

A will sets out how you would like your assets to be distributed upon your death. This might include leaving money or specific assets to your spouse, children, or even specific charitable organizations. If you have minor children, your will also stipulates who will care for them after you are gone.

Those who die without a valid will in place are referred to as intestate. This is not a highway in Florida. If you die intestate, your assets will be distributed according to the will that the federal government has written on your behalf. As you can imagine, this can often lead to undesirable results.

Power of Attorney

A power of attorney is a legal document which provides a trusted individual with the power to act on your behalf if you are unable to do so yourself. For example, if you were left in a coma as a result of a car accident, your power of attorney could make financial and medical decisions on your behalf. It is also possible to elect one individual to make your financial decisions, and another individual to make decisions pertaining to your health. Obviously the power of attorney represents a position of great responsibility, therefore considerable care should be taken in choosing someone who is both willing and able to fulfill these duties should the need arise.

Life Insurance

As a Canadian it should come as no surprise that our government will tax you on your death. When you die, the government will assume for tax purposes that you sold all of your assets immediately prior to death. As a result, you may have a substantial income tax bill to pay on you final tax return. There is one general exception to this rule. If you are married you can leave all of your assets to your spouse on a tax-deferred basis. However, on your spouse's death all of the tax will become due on all of the remaining assets. If there is not enough cash in the estate to pay the tax liability, then your executor will have to start selling assets until the tax bill is paid, leaving less for your beneficiaries.


This is where life insurance can save the day. First, the insurance proceeds are available exactly when they are needed to pay the tax liability, at death. Secondly, an insurance policy almost always costs pennies on the dollar, which makes it a very cost effective solution.

Consider a family who owns a summer cottage that they have enjoyed for decades. On the death of the last parent, there could be tens of thousands, possibly even hundreds of thousands in tax dollars to pay. If the children don't have the money to pay the taxman then they will likely be left with little choice but to sell the cottage to raise the money. This scenario is far from what most parents wish to have happen after they are gone, however, if proper planning is not done in advance this becomes a very real situation for many families. Having adequate insurance in place will ensure that the taxes are paid and the family cottage can continue to be enjoyed for many years to come.

As you can see, the essential components of an estate plan are not complicated. Therefore everyone should have a basic plan in place at a minimum. Your hard-earned assets and your family's financial well-being should not be left to chance. Doing so will only create tremendous inefficiencies, which will ultimately be paid by your beneficiaries. Remember, an estate plan is not about death, it's about leaving with greater peace of mind.

"We make a living by what we get, but we make a life by what we give." :: Winston Churchill

David Mason is a financial advisor in Victoria, BC.
He is a Chartered Life Underwriter, Certified Financial Planner and Registered Health Underwriter.
He can be contacted at david@donnellyadvisors.com ».